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Musk’s return to Twitter deal has Tesla investors worried

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Musk, who sold more than $15 billion worth of Tesla shares earlier this year to fund the deal, has threatened to pull out of the deal (Image: Shutterstock/Xalien)

around Elon Musk to the purchase agreement twitter was met with a wave of target price increases in the actions gives company of social media, although investors in Tesla (TSLA) fear that the billionaire is dispersing too much.

Musk, who sold more than $15 billion worth of Tesla shares earlier this year to fund the deal, has threatened to pull out of the deal, citing a large number of fake accounts, making him the target of a lawsuit by Twitter to close the deal. at the original offer price of $44 billion.

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While there is no word on another round of potential sales of Musk shares, Wedbush analyst Dan Ives has warned that the Tesla chief executive’s interest in closing the deal will weigh on the company’s stock.

“The big concern is that Musk is juggling too many balls at once,” Ives said. “We see minimal benefits to Musk owning Twitter for Tesla investors going forward.”

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Twitter shares, which closed at their highest level since April, were down about 2% on Wednesday, while Tesla’s were down nearly 6%.

At least three analysts raised Twitter’s share price target after it showed renewed interest in buying the company on Tuesday.

Art Hogan, chief market strategist at B. Riley Wealth in Boston, estimated that Musk may need to sell an additional $2 billion worth of stock before Tesla releases its quarterly results, scheduled for Oct. 19.

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Source: Moneytimes

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